* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Yen edges higher on risk aversion
* Traders brace for drawn-out trade war
* Gold prices up, stocks lower on risk-off trade
(Adds onshore yuan, Chinese data, German elections)
By Stanley White
TOKYO, Sept 2 (Reuters) - The yen strengthened on Monday,
thanks to bigger appetites for safe-haven assets as Washington
and Beijing put additional tariffs on each other's exports,
adding to the gloom hanging over the global economic outlook.
Gold, which tends be bought with the yen during times of
economic uncertainty, also rose on Monday by the most in almost
a week as investors were drawn to so-called risk-off trades.
The offshore yuan CNH= initially fell trading but pared
its losses after a private survey on Chinese manufacturing in
August beat market expectations.
Declines in Asian shares on Monday offered more evidence
that traders were steering from risk, which is likely to be an
important factor behind currency market swings in coming weeks.
"There are a lot of risk events this week from U.S. and
Chinese economic data, which should help us see who is hurting
more from the trade war, but we don't think a solution is
imminent," said Rodrigo Catril, senior foreign exchange
strategist at National Australia Bank in Sydney.
The yen rose around 0.1% versus to dollar JPY=EBS to
106.15 in Asian trading.
The Japanese currency rose around 0.2% to 71.43 versus the
Australian dollar AUDJPY= and advanced around 0.2% to 66.88
per New Zealand dollar NZDJPY= .
Spot gold XAU= rose 0.29% to $1,524.05 per ounce.
In the onshore Chinese market, the yuan CNY=CFXS traded at
7.1611 per dollar, versus its previous close of 7.1580.
In the offshore market, the yuan initially fell versus the
dollar but managed to trim its losses to trade at 7.1686 yuan
per dollar CNH=D3 , down around 0.1%.
China's factory activity unexpectedly expanded in August as
production edged up, the Caixin/Markit Manufacturing Purchasing
Managers' Index (PMI) survey showed on Monday, but orders
remained weak, suggesting sentiment is likely to remain fragile.
The United States slapped 15% tariffs on a variety of
Chinese goods on Sunday - including footwear, smart watches and
flat-panel televisions - while China imposed new duties on U.S.
Data coming this week includes a survey on Chinese services
and August trade numbers on Sunday. There will be manufacturing
and services surveys for the United States, which will also
release data on its trade balance and non-farm payrolls.
U.S. President Donald Trump said the sides would still meet
for talks later this month, but hopes for a resolution to the
trade war have diminished. Foreign-exchange trading could be subdued on Monday as U.S.
financial markets are closed for the Labour Day holiday.
The dollar index =USD against a basket of six major
currencies was little changed on Monday at 98.821.
Risk sentiment could also take a hit due to ongoing protests
in Hong Kong over China's rule of the city.
Thousands of protesters blocked roads and public transport
links to Hong Kong airport on Sunday in a bid to draw attention
to their fight for democracy. The euro stood at $1.0991 EUR=EBS , unchanged in Asia, but
sentiment for the common currency was weak after it tumbled on
Friday to the lowest in more than two years.
German Chancellor Angela Merkel's conservatives and her
coalition partners held off a surge in far right support in two
state elections in eastern Germany on Sunday. The result averted an immediate political crisis in Europe's
largest economy, but expectations are high that the European
Central Bank will cut interest rates at its next monetary policy
meeting on Sept. 12, which could weigh on the euro.
Sterling traded at $1.2158 GBP=D4 , down 0.07% so far on
the day.